Kuala lumpur: The government is working to identify effective strategies to mitigate the effects of rising local vehicle prices, following the enforcement of regulation P.U.(A) 402/2019, as announced by Deputy Finance Minister Lim Hui Ying. This regulation is related to the Excise Regulations concerning the determination of the value of locally manufactured goods for the purpose of imposing excise duty.

According to BERNAMA News Agency, the government plans to implement mitigation measures to lessen the impact on the public. Lim highlighted that data has been collected and engagement sessions have been held with industry stakeholders to gather insights and potential solutions to the challenges posed by the regulation.

Currently, an exemption from the implementation of regulation P.U.(A) 402/2019 is granted exclusively to manufacturers of completely knocked down (CKD) vehicles. This decision was made due to concerns within the local automotive industry about sudden price increases resulting from the regulation’s enforcement. The exemption aims to provide the industry with time to prepare for the eventual implementation of the regulation.

Lim also noted that the impact of this regulation on vehicle prices remains uncertain, as differences in the business models of local vehicle assembly companies lead to variations in the imposition of excise duties on manufactured vehicles.